Papa Johns is closing hundreds of locations

By Jordan Valinsky, CNN

New York (CNN) — Papa Johns is the latest pizza chain to close hundreds of locations following a tough quarter as customers pull back on spending.

The company revealed during Thursday’s earnings call that approximately 300 underperforming restaurants in North America will close by the end of 2027, with about 200 of them shuttering this year.

The affected restaurants are those “not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” said Ravi Thanawala, Papa Johns chief financial officer and president of the chain’s North America operations.

A specific list of locations wasn’t announced. Papa Johns had about 3,500 locations at the end of 2025, according to its annual report.

In addition to the closures, the company cut about 7% of its roughly 700-person corporate workforce.

The closures follow a brutal fourth quarter for the chain, which reported a 5.4% decline in same-store sales in North America. CEO Todd Penegor said in a statement the results “reflected a weak consumer backdrop and elevated promotional environment.”

Penegor is trying to engineer a turnaround for Papa Johns, focusing mainly on the menu. He recalibrated restaurants’ ovens to ensure better cooking and is improving its offerings. The chain most recently rolled out a new pan pizza.

Rival Pizza Hut announced earlier this month that it was closing about 250 locations in the first half of this year. Parent company Yum! Brands is undergoing a strategic review of the embattled brand.

Domino’s Pizza is the clear winner among the fast-food pizza chains. Earlier this week, the chain reported a 3.7% increase in same-store sales for the fourth quarter, fueled by value offerings and a new brand campaign.

The-CNN-Wire
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